Slide 1: Presentation to ESG & SRI Investors June 2022
DESIGNING, BUILDING, MANAGING AND INVESTING in cities, neighbourhoods and buildings that are innovative, diverse, inclusive and connected with a reduced carbon footprint. Desirable places to live and work. This is our ambition. This is our goal. This is our Purpose. PRESENTATION TO ESG & SRI INVESTO
Slide 2: Agenda
Icade at a glance 1 Overview of Icade CSR strategy 2 Icade’s Low-Carbon Strategy: aligned with a 1.5°C pathway AGENDA 3 Focus Sustainable finance 4 2022 Outlook & Conclusion Appendices ODDO SUSTAINABILITY FORUM INVESTOR PRESENTATION JUNE 2022 2
Slide 3: Icade at a glance
One of the most important UNIVERSITY OF CHICAGO urban transformation projects Paris, 13th district in Europe, in a former industrial area of Paris, which will host the University of Chicago’s new Centre in Paris. Icade at a glance ODDO SUSTAINABILITY FORUM INVESTOR PRESENTATION JUNE 2022 3
Slide 4: Icade at a glance: one of the leading French listed REITs
ICADE AT A GLANCE ICADE AT A GLANCE: ONE OF THE LEADING FRENCH LISTED REITS As of 12/31/2021 OFFICE INVESTMENT: Icade, the leading real estate player in Greater Paris €15.5bn property portfolio €12.2bn property portfolio excl. duties, Group share • Portfolio as of 12/31/2021: €8.9bn (100% basis) • A
Slide 5: Overview of Icade CSR strategy
Icade has been selected to develop a new neighbourhood in Versailles, the next-generation garden City, a green Oasis, where inhabitants live immersed in nature. The first project in a new Nature-Art-Education label. 1 Overview of Icade CSR strategy ODDO SUSTAINABILITY FORUM QUARTIER DE GALLY INVESTO
Slide 6: CSR at the core of our strategy
1. OVERVIEW OF ICADE CSR STRATEGY CSR AT THE CORE OF OUR STRATEGY 5 high-priority issues to address the planet’s social and environmental challenges As a reminder • Involving all its employees and partners • Ambitious 2019–2022 goals • A policy recognised by non-financial rating agencies 2022: furth
Slide 7: Low carbon, a top priority
1. OVERVIEW OF ICADE CSR STRATEGY LOW CARBON, A TOP PRIORITY 2022 2005 2020 Icade is committed 2010 2017 2019 to the SBTi with A well-established 1st private service 2019-2022 Strategic Promoting the aim of having sector building in 1st green 1st developer to Plan: low carbon, low-carbon living: its
Slide 8: Leading position confirmed in 2021 by CSR rating agencies
1. OVERVIEW OF ICADE CSR STRATEGY LEADING POSITION CONFIRMED IN 2021 BY CSR RATING AGENCIES CLIMATE CHANGE NON-SPECIALISED REAL ESTATE Ranked 4th out of 445 listed real estate companies worldwide “Sector leader” status in the category of listed diversified Score: 7.7/100 (inverted scale) companies i
Slide 9: Icade's Low-Carbon Strategy: aligned with a 1.5°C pathway
SO WOOD Icade was selected to develop a Montpellier, Hérault project that will have a very low impact on the environment and even be energy self-sufficient during the summer months 2 Icade’s Low-Carbon Strategy: aligned with a 1.5°C pathway ODDO SUSTAINABILITY FORUM INVESTOR PRESENTATION JUNE 2022 9
Slide 10: Icade's low-carbon policy: good results in 2021
2. ICADE’S LOW-CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY ICADE’S LOW-CARBON POLICY: GOOD RESULTS IN 2021 Icade significantly reduced carbon intensity in each business line between Some concrete achievements… 2015 and 2021 (in kg CO2/sq.m) OFFICE INVESTMENT 56% -30% Share of renewable energy in
Slide 11: Icade's carbon footprint: enlarged scope to comply with SBTi
2. ICADE’S LOW-CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY ICADE’S CARBON FOOTPRINT: ENLARGED SCOPE TO COMPLY WITH SBTI Icade's SBTI commitment 40% OFFICE PROPERTY INVESTMENT and reporting scope in 2019 Emissions on a life-cycle basis Over a 50-year horizon 5% (from energy consumption by tenants)
Slide 12: Further ramping up our low-carbon strategy in 2022
2. ICADE’S LOW-CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY FURTHER RAMPING UP OUR LOW-CARBON STRATEGY IN 2022 Achieving net-zero carbon emissions by 2050 1 2 Reducing GHG emissions by 90% in Targets for reducing GHG emissions by 2030 for our three divisions and Corporate absolute terms between 20
Slide 13: Office property investment beyond SBTi requirements
2. ICADE’S LOW-CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY OFFICE PROPERTY INVESTMENT BEYOND SBTI REQUIREMENTS -60% €100m: investments between 2022 & 2026 Target reduction in operational carbon intensity between 2019 and 2030 in France, in kgCO2 e/sq.m/year Main measures: Beyond the requirements
Slide 14: Healthcare property investment low carbon strategy with tenants
2. ICADE’S LOW-CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY HEALTHCARE PROPERTY INVESTMENT COMMITTED TO A LOW CARBON STRATEGY WITH TENANTS -37% €40-50m: investments between 2022 & 2026 Target reduction in operational carbon intensity between 2019 and 2030 in France, in kgCO2 e/sq.m/year Main measu
Slide 15: Property development ramp up low carbon construction
2. ICADE’S LOW-CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY PROPERTY DEVELOPMENT RAMP UP LOW CARBON CONSTRUCTION -41% E+C- label: 50% of homes Target reduction in carbon intensity between 2019 and 2030 and 100% of offices over 5,000 sq.m for buildings built, in kgCO2 e/sq.m over a 50-year horizon
Slide 16: An ambitious and responsible carbon offsetting policy
2. ICADE’S LOW-CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY AN AMBITIOUS AND RESPONSIBLE CARBON OFFSETTING POLICY LABARTHE BLEYS (81) Started in 2019! • Afforestation of agricultural land (5.5 ha) 92,000 tonnes (1) of CO2 • 2,780 trees (poplars, cedars) • Label bas carbone • Forest certified PEFC
Slide 17: Innovation as a key driver for success
2. ICADE’S LOW-CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY INNOVATION AS A KEY DRIVER FOR SUCCESS Ecosystem of solutions provided by start-ups supported by Urban Odyssey Concrete low-carbon solutions at every link on the real estate value chain ODDO SUSTAINABILITY FORUM INVESTOR PRESENTATION JUNE
Slide 18: Say on Climate & Biodiversity resolution approved by more than 99%
2. ICADE’S LOW-CARBON STRATEGY: ALIGNED WITH A 1.5 °C PATHWAY SAY ON CLIMATE & BIODIVERSITY RESOLUTION APPROVED BY MORE THAN 99% A new step for Icade with the approval by 99.3% at the General Meeting of a resolution “Say on Climate and Biodiversity” Shareholders will be asked to vote on the resoluti
Slide 19: Focus Sustainable finance
PIPADY, LOT 2 Icade was selected to develop a Toulon, Var project that will have a very low impact on the environment and be energy self-sufficient during the summer months. 3 Focus Sustainable finance ODDO SUSTAINABILITY FORUM INVESTOR PRESENTATION JUNE 2022 19
Slide 20: Icade's active sustainable financing policy
3. FOCUS SUSTAINABLE FINANCE ICADE’S ACTIVE SUSTAINABLE FINANCING POLICY Icade’s inaugural Green Bond issued Icade Santé’s inaugural Social Bond 2 new RCF lines signed on in 2017 issued in 2020 H1-2020 for a total of €450m A Green Bond meeting The first Corporate Social Bond 7-year €300m green RCF t
Slide 21: 2022 Outlook & Conclusion
Sur Moreau PAC facility, completed in June 2021. Icade Santé relied on the expertise of Icade Promotion to build this facility under a property development contract. 4 2022 Outlook & Conclusion ODDO SUSTAINABILITY FORUM SUR MOREAU PAC FACILITY INVESTOR PRESENTATION Saintes, Charente-Maritime JUNE 20
Slide 22: Continuation of the group strategic priorities for 2022
4. 2022 OUTLOOK & CONCLUSION CONTINUATION OF THE GROUP STRATEGIC PRIORITIES FOR 2022 Office • Focus on letting and renewal activity Low-carbon priority Property • Execution of disposal plan and opportunistic acquisitions Investment • Launch of selective new development projects Constraint Healthcare
Slide 23: Appendices
At the gateway to Tours, Icade’s RIVE SUD “RIVE SUD” project at the heart Tours, Indre-et-Loire of a new district is ideally located with shops, offices, residential buildings and a future tram station. Appendices ODDO SUSTAINABILITY FORUM INVESTOR PRESENTATION JUNE 2022 23
Slide 24: Biodiversity: strong commitments and concrete results
APPENDICES – CSR BIODIVERSITY: STRONG COMMITMENTS AND CONCRETE RESULTS ... concrete results across Strong commitments... our 3 business lines 100% of the land area developed > 170,000 sq.m restored and preserved thanks to subject to restoration and preservation Icade’s contribution since the program
Slide 25: Scarcity of resources and circular economy
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES SCARCITY OF RESOURCES AND CIRCULAR ECONOMY CSR commitments 2021 Results • 100% of controlled operational waste • 89% of controlled waste was recycled or recovered Office recycled or recovered by 2020 in 2021 Property • Water consumption below 0.4 m3/sq.
Slide 26: Territorial cohesion and inclusion
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES TERRITORIAL COHESION AND INCLUSION CSR commitments 2021 Results Office • Increase the number of local and community Property partnerships in the business parks between 2019 • 30 local community initiatives were organised Investment and 2022 for business
Slide 27: Human resources
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES HUMAN RESOURCES CSR commitments 2021 Results • 25% of positions filled internally each year • 21% of positions were filled internally in 2021 • 90% of employees trained each year • 100% of employees received training in 2021 • Increase the proportion of
Slide 28: Further alignment between financial and non-financial reporting
APPENDICES – TAXONOMY FURTHER ALIGNMENT BETWEEN FINANCIAL AND NON-FINANCIAL REPORTING Icade reporting based on 2021 data « Eligible activities » per European Taxonomy definition Total IFRS Eligible (1) Scope (in €bn) (in €bn) % Construction (new buildings) Rental income from investment property Reno
Slide 29: Updated framework in line with best practices
APPENDICES – NEW GREEN FINANCING FRAMEWORK UPDATED FRAMEWORK IN LINE WITH BEST PRACTICES 2021 GREEN FINANCING FRAMEWORK • Alignment of 2021 Green Financing Framework with • Eligibility criteria in line with best market practices Green Bond Principles (GBP) and Green Loan Principles and with Low Carb
Slide 30: Eligibility criteria – 2021 Green Financing Framework update (1/2)
APPENDICES – NEW GREEN FINANCING FRAMEWORK ELIGIBILITY CRITERIA – 2021 GREEN FINANCING FRAMEWORK UPDATE (1/2) Eligible 2017 – Green Bond Framework UN SDGs Environmental Project Eligibility Criteria 2021 – Green Financing Framework Eligibility Criteria Contribu Objective(s) Category tion • Buildings
Slide 31: Eligibility criteria – 2021 Green Financing Framework update (2/2)
APPENDICES – NEW GREEN FINANCING FRAMEWORK ELIGIBILITY CRITERIA – 2021 GREEN FINANCING FRAMEWORK UPDATE (2/2) Eligible 2017 – Green Bond Framework UN SDGs Environmental Project Eligibility Criteria 2021 – Green Financing Framework Eligibility Criteria Contribu Objective(s) Category tion Energy effic
Slide 32: Annual reporting – examples of indicators
APPENDICES – NEW GREEN FINANCING FRAMEWORK ANNUAL REPORTING – EXAMPLES OF INDICATORS Eligible Project Environmental Category Eligibility Criteria Examples of Output Indicators Examples of Impact Indicators objectives • Type and level of green building certification(s) achieved/targeted • Distance to
Slide 33: Key highlights 2021 full year results
APPENDICES – 2021 FULL YEAR RESULTS KEY HIGHLIGHTS Solid 2021 FY results, above expectations… Icade has coped with the Covid-19 crisis and its complex environment We stick to our strategic plan and our focus on ESG The Board is fully committed and fully aligned with management ODDO SUSTAINABILITY FO
Slide 34: Solid 2021 indicators
APPENDICES – 2021 FULL YEAR RESULTS SOLID 2021 INDICATORS +2.9%, -0.5% LFL(1) +31.8% -19 bps LIABILITIES PROPERTY INVESTMENT GROUP INDICATORS PROPERTY DEVELOPMENT €551.2m €985.1m 1.29% +7.2% vs. €535.9m as of 12/31/2020 vs. €747.4m as of 12/31/2020 vs. 1.48% as of 12/31/2020 GROSS RENTAL INCOME(2) R
Slide 35: 2021 results well above guidance and consensus
APPENDICES – 2021 FULL YEAR RESULTS 2021 RESULTS WELL ABOVE GUIDANCE AND CONSENSUS 2021 NCCF NCCF significantly above guidance €390m €5.19 per share Back to 2019 level +8.8% +7.2% EPRA NAV NDV as of December 2021 Double digit NAV NDV TSR: c.11% Back to pre crisis level €6.9bn €90.6 per share +11.0%
Slide 36: Dividend above preliminary announcement reflecting strong NCCF growth
APPENDICES – 2021 FULL YEAR RESULTS DIVIDEND ABOVE PRELIMINARY ANNOUNCEMENT REFLECTING STRONG NCCF GROWTH Board of Directors’ proposal to the General Meeting to be held on April 22, 2022 +4.7% Growth vs. 2020 Conservative 2021 81% payout ratio 2021 dividend at €4.20 per share Dividend yield 6.7% (ba
Slide 37: Q1 2022: key takeaways
APPENDICES – Q1 2022 RESULTS Q1 2022: KEY TAKEAWAYS Strong business performance across our 3 business lines • Office Property Division: nearly stable GRI (€85.7m, +1.4% vs 2021), in a context of dynamic asset rotation • Healthcare Property Division: a still steadily growing GRI (≈+14.6%) driven by p
Slide 38: Q1 2022 key highlights - Office property investment
APPENDICES – Q1 2022 RESULTS Q1 2022 KEY HIGHLIGHTS - OFFICE PROPERTY INVESTMENT Solid leasing activity First positive signs of inflation on index-linked rents reviews Increasing rental income, LfL growth impacted by specific items 100% +1.2% +2.8% leases linked to indices with a Indexation effect o
Slide 39: Q1 2022 key highlights - Healthcare property investment
APPENDICES – Q1 2022 RESULTS Q1 2022 KEY HIGHLIGHTS - HEALTHCARE PROPERTY INVESTMENT GRI: Steady growth, mainly driven by international acquisitions, Continued diversified growth predominance of acute care facilities €52.1m +14.6% 85% €52m ~70% Investments in Q1 Investments abroad GRI in group share
Slide 40: Q1 2022 key highlights - Property development
APPENDICES – Q1 2022 RESULTS Q1 2022 KEY HIGHLIGHTS - PROPERTY DEVELOPMENT SUSTAINED BUSINESS MOMENTUM IN Q1 2022 GROWTH POTENTIAL CONFIRMED Economic revenue €1.8bn €2.9bn €7.7bn Backlog Revenue expected from Medium term the controlled residential land revenue potential €264m +6% portfolio (1) (resi
Slide 41: Impact of inflation & accelerating interest rate increase
APPENDICES – Q1 2022 RESULTS – SOLID AND AGILE TO MANAGE NEW STAKES IMPACT OF INFLATION & ACCELERATING INTEREST RATE INCREASE • 100% of leases indexed on CPI related indexes Revenues • Cap rate of Icade portfolio: Office 5.5%, Healthcare 5.0% and valuations Significant buffer (risk premiums) vs. l
Slide 42: Icade, a strong credit profile
APPENDICES – Q1 2022 RESULTS – SOLID AND AGILE TO MANAGE NEW STAKES ICADE, A STRONG CREDIT PROFILE 1 2 SOLID LONG-TERM SHAREHOLDER STRUCTURE STRONG LIQUIDITY POLICY • RCFs : €2.0bn 39.2% by CDC rated 19.1% by Crédit Agricole Aa2/AA/AA • Cash Holdings : €0.8bn Assurances rated A- • RCFs remained undr
Slide 43: Solid debt indicators
APPENDICES – Q1 2022 RESULTS – SOLID AND AGILE TO MANAGE NEW STAKES SOLID DEBT INDICATORS Average debt maturity stable at 5.9 years Very attractive cost of debt (-19 bps vs. 12/31/2020) 7 1,60% 6 1,50% 6.4 6.4 5.9 1.55% 1.54% 5 5.9 1,40% 1.48% 4 1,30% 1.29% 3 1,20% 2 1,10% 2018 2019 2020 2021 2018 2
Slide 44: Governance structure meeting the best standards
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES GOVERNANCE STRUCTURE MEETING THE BEST STANDARDS Governance in line with the Afep-Medef Code Board of Directors 15 40% 1/3 members of women of independent directors 4 1 specialised committees, 3 of them chaired independent Vice-Chairwoman by independent
Slide 45: A CSR policy managed by a high level of governance
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES A CSR POLICY MANAGED BY A HIGH LEVEL OF GOVERNANCE Icade’s CSR & Innovation organisation BOARD OF DIRECTORS INNOVATION AND CSR COMMITMENTS INVOLVE THE ENTIRE CSR COMMITTEE 3 directors MANAGEMENT STRUCTURE AND ARE Oversees INCORPORATED IN THE COMPANY’S O
Slide 46: Icade's carbon footprint: enlarged scope to comply with SBTi
APPENDICES – ICADE’S LOW-CARBON STRATEGY: ALIGNING WITH A 1.5 °C PATHWAY ICADE’S CARBON FOOTPRINT: ENLARGED SCOPE TO COMPLY WITH SBTI ODDO SUSTAINABILITY FORUM INVESTOR PRESENTATION JUNE 2022 46
Slide 47: CSR commitments (1/6)
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES CSR COMMITMENTS (1/6) Results Commitments Scope Indicators Base year 2019 2020 2021 Objectives Time horizon Progress LOW-CARBON TRANSITION AND PRESERVATION OF RESOURCES Reduction in carbon intensity between 2015 and 2025 (in kg CO₂/sq.m/year) 2015 -27%
Slide 48: CSR commitments (2/6)
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES CSR COMMITMENTS (2/6) Results Commitments Scope Indicators Base year 2019 2020 2021 Objectives Time horizon Progress LOW-CARBON TRANSITION AND PRESERVATION OF RESOURCES Office Proportion of business parks with a net positive impact on biodiversity 100%
Slide 49: CSR commitments (3/6)
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES CSR COMMITMENTS (3/6) Results Commitments Scope Indicators Base year 2019 2020 2021 Objectives Time horizon Progress LOW-CARBON TRANSITION AND PRESERVATION OF RESOURCES Office Rate of annual increase in office floor area with in-use certification 20% 6%
Slide 50: CSR commitments (4/6)
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES CSR COMMITMENTS (4/6) Results Commitments Scope Indicators Base year 2019 2020 2021 Objectives Time horizon Progress OCCUPANTS’ WELL-BEING, SUPPORT FOR NEW HABITS AND LIFESTYLES AND A STRONG LOCAL FOOTPRINT Office Property 1. CONTRIBUTING Investment Num
Slide 51: CSR commitments (5/6)
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES CSR COMMITMENTS (5/6) Results Commitments Scope Indicators Base year 2019 2020 2021 Objectives Time horizon Progress OCCUPANTS’ WELL-BEING, SUPPORT FOR NEW HABITS AND LIFESTYLES AND A STRONG LOCAL FOOTPRINT Office Proportion of floor area covered by a r
Slide 52: CSR commitments (6/6)
APPENDICES – CSR STRATEGY AND OTHER CSR ISSUES CSR COMMITMENTS (6/6) Results Commitments Scope Indicators Base year 2019 2020 2021 Objectives Time horizon Progress EMPLOYEE SKILLS DEVELOPMENT, WORKPLACE WELL-BEING AND DIVERSITY Proportion of employees who received training 92% 97% 100% 90% 2019 to 2